8x8 2012 Annual Report Download - page 3

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PART I
ITEM 1. BUSINESS
Forward-Looking Statements and Risk Factors
Statements contained in this annual report on Form 10-K, or Annual Report, regarding our expectations, beliefs, estimates,
intentions or strategies are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Any statements contained herein that are not statements of historical fact
may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “should,” “estimates,”
“predicts,” “potential,” “continue,” “strategy,” “believes,” “anticipates,” “plans,” “expects,” “intends,” and similar expressions
are intended to identify forward-looking statements. You should not place undue reliance on these forward-looking statements.
Actual results and trends may differ materially from historical results or those projected in any such forward-looking
statements depending on a variety of factors. These factors include, but are not limited to, customer acceptance and demand
for our voice over Internet protocol, or VoIP, telephony products and services, the reliability of our services, the prices for our
services, customer renewal rates, customer acquisition costs, actions by our competitors, including price reductions for their
telephone services, potential federal and state regulatory actions, compliance costs, potential warranty claims and product
defects, our needs for and the availability of adequate working capital, our ability to innovate technologically, the timely
supply of products by our contract manufacturers, potential future intellectual property infringement claims that could
adversely affect our business and operating results, and our ability to retain our listing on the NASDAQ Capital Market. The
forward-looking statements may also be impacted by the additional risks faced by us as described in this Report, including
those set forth under the section entitled "Risk Factors." All forward-looking statements included in this Annual Report are
based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking
statements. Readers are urged to carefully review and consider the various disclosures made in this Annual Report, which
attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of
operations and prospects.
Our fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in this Annual Report, refers to the
fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2012 refers to the fiscal year ended March 31,
2012). Unless the context requires otherwise, references to “we,” “us,” “our,” “8x8” and the “Company” refer to 8x8, Inc. and
its consolidated subsidiaries.
Overview
8x8 develops and markets telecommunications services for Internet protocol, or IP, telephony and video applications as well as
contact center, web-based conferencing and unified communications services, and cloud-based computing services. We offer
the 8x8 Virtual Office hosted PBX (private branch exchange) service, 8x8 Virtual Contact Center service, 8x8 Virtual Office
Pro unified communications solution and 8x8 Cloud-Based Computing Solutions.
We initially marketed our services under the Packet8 brand. In May 2009, we began marketing our services under the 8x8
brand. As of March 31, 2012, we had more than 28,500 business customers who use our services as their primary business
telephone system, including IP dial tone, long distance and all of the business class features typically associated with a
traditional business phone system or PBX. Each business customer subscribes to a number of various lines and services (e.g.
physical phone extensions, virtual extensions, fax lines, toll free numbers, receptionist software, and unified communications
services).